In a report released yesterday, Anna Andreeva from Oppenheimer reiterated a Buy rating on Children’s Place (NASDAQ: PLCE), with a price target of $150. The company’s shares closed yesterday at $128.70.
“PLCE is one of very few stocks in our coverage down on the year (-12% YTD, universe +30%) with short interest building (+30% since March) as negative comps in 1Q18 (first negative in nine quarters) with uncharacteristic EPS miss spooked investors’ confidence in the double-digit earnings algorithm (12% 2020 EBIT goal, vs. 8.5% modeled this year). We think QTD comps are still above HSD guide (May was solid for retail, kids’ SpendTrend swung 26 points vs. April, greater than 15-20 points in ’17/’16); while some of current discounting online appears deeper (recent $1.99 graphics promo), company is also becoming more flexible with pricing (denim currently at $9.75 vs. $7.99 typically). Valuation contracting 2-3x vs. ’17; 2Q18 gross margin expectations +50 bps (ex-accounting change) look reasonable.”
According to TipRanks.com, Andreeva is a 4-star analyst with an average return of 7.0% and a 51.8% success rate. Andreeva covers the Services sector, focusing on stocks such as Lululemon Athletica Inc, Urban Outfitters, and Foot Locker Inc.
Children’s Place has an analyst consensus of Moderate Buy, with a price target consensus of $142.40.
Children’s Place’s market cap is currently $2.17B and has a P/E ratio of 29.39. The company has a Price to Book ratio of 6.32.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
The Children’s Place, Inc. engages in the provision of apparel, accessories and footwear for children. It also designs, contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children’s Place, Place and Baby Place. The company was founded in 1969 and is headquartered in Secaucus, NJ.